This Aspen Aerogels Insider Reduced Their Stake By 84%

Looking at Aspen Aerogels, Inc.'s (NYSE:ASPN ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Aspen Aerogels

Aspen Aerogels Insider Transactions Over The Last Year

The Senior Vice President of Operations & Strategic Development, Gregg Landes, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$25.65 each. That means that an insider was selling shares at slightly below the current price (US$29.67). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 84% of Gregg Landes's holding. Gregg Landes was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 86.54k shares for US$551k. On the other hand they divested 48.54k shares, for US$1.2m. Gregg Landes divested 48.54k shares over the last 12 months at an average price of US$25.35. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Aspen Aerogels better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Aspen Aerogels Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Aspen Aerogels. In total, Senior Vice President of Operations & Strategic Development Gregg Landes sold US$1.2m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Aspen Aerogels Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Aspen Aerogels insiders own about US$30m worth of shares. That equates to 1.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Aspen Aerogels Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aspen Aerogels. Our analysis shows 4 warning signs for Aspen Aerogels (1 is a bit concerning!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.